PROJECT SUMMARY
ARSN 142 722 585
Willmott Forests’ plantation strategy is a simple one ‘develop valuable plantation resources of proven
species, in key regions, with a focus on value adding’.
ABOUT THE COMPANY
THE WILLMOTT FORESTS’ VIEW
We see ...
!
Commercial plantations increasing in value;
!
Softwood demand to intensify;
!
High value timbers in great demand;
!
Developing biofuel markets that will add
value to our resource;
!
Dedicated, fast growing plantations for energy
and fuel; and
!
Willmott Forests playing a key role.
PROJECT REGIONS
Willmott Forests is a publicly listed (ASX Code: WFL) and
quality accredited company. Our core activities are
establishing, managing, harvesting, processing and
supplying timber products from plantation grown resources
on behalf of our growers and shareholders.
The company employs over 150 people and manages in
excess of 53,000 hectares of Radiata pine, Silky Oak,
She-oak and African mahogany plantations, ranging from
new plantings to mature trees.
African mahogany region
High value timber
Silky Oak region
High value timber
Radiata pine regions
High value structural
timber and pulp
THE PROJECT AT A GLANCE
THE OFFER
The Willmott Forests Premium Forestry Blend - 2010 Project (“Project”) is an opportunity to participate in a Project
that invests in a blend of:Species
Species Allocation
Radiata pine
Approximately 75%
African mahogany
Approximately 20%
Silky Oak
Approximately 5%
Investors are issued Forestry Interests. Each Forestry Interest represents a share in the beneficial interest in the
Project Property. The Project Property includes the Land Agreements, the Trees established for the purposes of the
Project and the income derived from the harvesting and sale of the Trees.
Species
End Products
Radiata pine
Structural timber, newsprint, pulp
African mahogany High value appearance timber
Silky Oak
High value appearance timber
Indicative timing of
harvest and sale
(Age of Tree)
13 15*
8
12
10
16
15
* Sold as standing timber
APPLICATION PRICE
MINIMUM INVESTMENT
OFFER OPENS
OFFER CLOSES
$5,000 per Forestry Interest.
The minimum application is one (1) Forestry Interest.
7 April 2010.
30 June 2010. Willmott Forests may, however, determine to extend the Offer or close the Offer Period earlier.
INVESTMENT TERM
The term of the Project will be approximately 16 years after the establishment of all the Trees.
PAYMENT OPTIONS
Payment options for the Application amount are as follows:
· Cash;
· 12 Month Interest Free Loan, available through Willmott Finance Pty Ltd;
· 3 or 5 year Principal and Interest Loans available through Willmott Finance Pty Ltd.
FEES
STOCKING GUARANTEE
INSURANCE
TAX TREATMENT
INDEPENDENT RESEARCH
In addition to the application fee, Investors will pay a Deferred Forestry Management Fee of 10% of Gross Timber
Proceeds. There are no annual payments other than insurance. Refer to section 5 of the PDS for further details.
Stocking Guarantee for a period of 13 months from the date of completion of the planting of each species
(”Stocking Guarantee Period”).
Plantation Insurance - following the expiry of the Stocking Guarantee Period for a species of Tree,Willmott Forests
will use its reasonable endeavours to obtain and maintain an insurance policy in respect of that species which at a
minimum will cover fire.
100% tax deductible based on ATO Product Ruling PR2010/4.
Independent Research available.
The Project is a registered managed investment scheme which will establish Radiata
pine, African mahogany and Silky Oak plantations for the supply of sawlogs to the
domestic and export markets.
BENEFITS OF INVESTING IN THE PROJECT
Willmott Forests is a leading plantation land
and forestry business with a 30 year history.
BENEFITS OF THE OFFER
TERM
A new Project structure not previously
available in this sector ...
The term of the Project will be approximately
16 years after establishment of all of the Trees
which is expected to occur within 18 months
after 30 June 2010.
! pre-paid leases - enhanced land tenure
arrangements;
! ‘Switch’ feature to provide ongoing
funding for the Project;
! ‘stand alone’ Project;
! new diversified forestry blend; and
! 100% tax deductible.
The term of the Project encompasses the
anticipated growth and harvest cycle of the
African mahogany and Silky Oak plantations
and the growth and sale of semi-mature
standing timber from the Radiata pine
plantations.
LAND SECURITY
ESTABLISHED AND HIGH VALUE
SPECIES
Radiata pine, African mahogany and Silky
Oak plantations will be established under the
Project. Radiata pine is a well established
timber species and Silky Oak and African
mahogany are high value hardwood species.
FORESTRY INCOME
The Project is expected to derive income from:
! the Thinning, harvesting and sale of the
African mahogany and Silky Oak trees;
and
! the Thinning and sale of the semi-mature
standing Radiata pine trees.
Each Investor will receive a proportion of the
Forestry Income determined by reference to
the number of Forestry Interests held by the
Investor.
Willmott Forests has secured access to
suitable plantation land ...
! proven site quality;
! known procurement costs;
! majority of 2010 Project land
requirements has already been
secured;
! land rental pre-paid for the duration of
the term on commencement - provides
security of tenure to the land throughout
the term of the Project against financial
default and competing adverse interests.
Land Provider
Type
Tenure
Willmott Forests
R1 & R2
Owned /
Pre-paid Lease
Third Parties*
R2 & R3
Pre-paid Lease
WILLMOTT FORESTS PREMIUM
FORESTRY BLEND - 2010 PROJECT
Investor
STRUCTURE
Constitution
* Third Parties may include Hancock Victoria
Plantations and/or Forests NSW.
R1 = First Rotation - new land
R2 = Second Rotation - land previously used
commercially in plantation production.
R3 = Third Rotation - land previously used
commercially in plantation production.
Willmott Forests’ Project delivers security of
land tenure against financial default.
Willmott Forests Limited
(Responsible Entity)
Land Sourcing and Forestry
Services Agreement
Land Agreements
(Sub-Lease/Sub Licence/
Forestry Rights Deed)
Willmott Forests Investment Management
“WIFM”
(Manager)
Willmott Forests has a long track record of
successfully identifying and securing suitable
land to fulfil obligations for it’s Projects.
Radiata pine
Forests.
This is intended to facilitate funding for the
ongoing operation of the Project.
LOW CORRELATION WITH RETURNS
FROM OTHER ASSET CLASSES
African mahogany
Silky Oak
The factors that impact returns from an
investment in plantation forestry are different
from those that affect returns from more
traditional investment asset classes such as
shares, fixed interest and commercial
property.
This means that the returns from a plantation
forestry investment are expected to have a
low correlation to returns from investments in
the more traditional investment asset
classes.
SALE OF RADIATA PINE AS STANDING
TREES
The usual rotation (that is, the period of time
from establishment to harvesting) of a
Radiata pine tree is 25 years.
PROJECT MANAGEMENT
DIVERSIFICATION
Willmott Forests is the Responsible Entity of
the Project and is responsible for all aspects
of the Project including the establishment,
maintenance and marketing of the Trees.
The Project offers diversity by:
! the region in which plantations are
established;
! the species of Trees which are
established; and
ENHANCED INVESTOR SECURITY
The ‘Switch’ ...
The Project incorporates a ‘switch’ feature
whereby the Deferred Forestry Management
Fee equal to 10% of the Gross Timber
Proceeds is replaced with an Annual Forestry
Management Fee of $142.50 per Forestry
Interest, payable to a new Responsible Entity,
in the event of the insolvency of Willmott
! the end markets for the Trees.
Investors will be able to participate in the
Project which will establish plantations on a
scale, and in locations, which the investor
may not be able to establish if the investor
were investing on an individual basis.
Under the Project, the semi-mature Radiata
pine trees will be sold as standing timber
approximately 15 years after the Trees are
established, through a tender process in
which Willmott Forests may participate.
If the sale price of the Radiata pine trees is
below 90% of the market value of the Trees
determined by independent valuation,
Willmott Forests will contribute from its own
assets the difference between the sale price
and 90% of the market value of the trees.
The Responsible Entity:
Willmott Forests Limited
ABN 17 063 263 650
Australian Financial Services Licence
Licence No 233215
249 Park Street (Locked Bag 4011)
South Melbourne, Victoria 3205
Telephone (03) 9696 1355
Facsimile (03) 9696 5567
Freecall 1800 801 866
www.willmottforests.com.au
Info@willmottforests.com.au
The Manager:
Willmott Forests Investment Management Pty Ltd
ABN 50 098 718 837
249 Park Street (Locked Bag 4011)
South Melbourne, Victoria 3205
The Project:
Willmott Forests Premium Forestry Blend - 2010 Project
ARSN 142 722 585
Important Information
This Product Disclosure Statement (PDS) is dated
7 April 2010. Willmott Forests Limited (Willmott
Forests or Responsible Entity ) is the
Responsible Entity of the Willmott Forests
Premium Forestry Blend - 2010 Project ARSN 142
722 585 (Project) and the issuer of the PDS.
The Project is not intended to be a short term
investment and is subject to the normal risks
associated with commercial plantation forestry.
The Responsible Entity does not guarantee any
particular return to Investors or that any particular
expenditure by Investors in relation to the Project
will be tax deductible. A paper copy of the PDS can
be obtained from or inspected at Willmott Forests.
The PDS is available electronically from Willmott
Forests' website (www.willmottforests.com.au).
The offer of the PDS is only available to persons
receiving this PDS (electronically or otherwise) in
Australia.
The information in the PDS and this Project
Summary is general information only and has not
been prepared having regard to the investment
objectives, financial situation, or the specific needs
of any particular person. As an investor you should
consider whether the information in the PDS is
appropriate for you in light of your objectives,
financial situation and needs. You should seek
professional advice before making an investment
decision and consider the risk factors that could
affect the financial performance of the Project.
The information in the PDS and in this Project
Summary is up to date at the time when it was
prepared. Information relating to the Project that is
not materially adverse is subject to change from
time to time and may be updated by the
Responsible Entity. Where information is updated
it can be found at any time on Willmott Forests'
website at www.willmottforests.com.au. A paper
copy of any updated information will be given to a
person without charge on request.
Defined words and expressions used in the PDS
are explained in the Glossary of Terms set out in
page 67 of the PDS. Unless otherwise specified,
photographs used in the PDS and this Project
Summary are for illustration only and should not be
interpreted to mean that any person shown
endorses the Project or Willmott Forests or that
Willmott Forests or any other person referred to
directly or indirectly in the PDS owns, uses or has
any rights in relation to any item shown.
The PDS document is important and should be
read in its entirety before a decision is made to
apply for Forestry Interests. If you are uncertain or
have any doubts about applying for Forestry
Interests, you should consult your financial
advisor, solicitor or accountant.
Forestry Interests will be issued only on receipt of a
completed Application Form which is attached to or
accompanies the PDS. No Forestry Interests will
be issued on the basis of the PDS after the Offer
Period closes, unless the relevant application was
received prior to the Offer Period closing.